(a) The same cost may be classified in a variety of different ways for different purposes. Identify...

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(a) ‘The same cost may be classified in a variety of different ways for different purposes.’

Identify three different ways of classifying the wages of an employee and give an example of the purpose of each method of classification. (6 marks)

(b) Discuss the possible effects, on a company’s costs, of changing the method of remunerating its direct workers from a time-rate to a piecerate based scheme.

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Accounting Costing And Management

ISBN: 9780198328230

2nd Edition

Authors: Riad Izhar, Janet Hontoir

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